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PRLA 2013 Officers CHAIRMAN Matt English Milestone Hospitality Management LLC, Lancaster Central and Lancaster chapters VICE CHAIRMAN Mike Rodden Philadelphia Marriott West, West Conshohoken Philadelphia Delaware Valley Chapter VICE CHAIRMAN Rick Sell Bahama Breeze, Exton Philadelphia Delaware Valley Chapter TREASURER Jeff Cohen Smallman Street Deli, Pittsburgh Western Chapter

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Program Administration


THE NEW legislative session is in full swing in Harrisburg. In a historic vote this March, the House of Representatives voted to pass House Bill (HB) 790 (Turzai, R—Allegheny), which would privatize wine and spirits sales in Pennsylvania. This was the first time a privatization bill has received a vote on the floor of either chamber of the Legislature since the end of Prohibition. The Pennsylvania Restaurant & Lodging Association (PRLA) supported passage of the bill in the House, and played an important advocacy role by talking to swing votes and key representatives during the debate. For licensees, the bill includes a 4 percent increase in the wholesale discount, allows for the sale of 6 bottles of wine to go and maintains important de novo protections. While we supported passage of the bill in the House, the PRLA does have significant concerns with the legislation that we look forward to addressing now that the bill has arrived in the Senate. These items include increasing the wholesale discount by 8 percent as opposed to 4 percent, improving the wholesale purchasing model to ensure competitive pricing and keeping the increases to fees and fines in check. The Senate Law & Justice Committee will be holding hearings on HB 790 and the PRLA will be providing testimony. This spring we launched a fundraising drive to support our advocacy and lobbying work. Our political education committee (PEC) and political action committee (PAC) funds are critical to advancing the policy goals of our industry. PEC funds are used to educate lawmakers about our priorities, pay for outside lobby contracts and pay for our annual Legislative Day. PAC funds are used to contribute to the campaign committees of legislators who appreciate our industry and support our goals. Please consider a donation to one or both of these funds this year—see page 22 for the donation form. The PRLA’s 25th annual Legislative Day takes place on Tuesday, May 7 at the Capitol Complex. This is your opportunity to talk face-to-face with your elected

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Matt English

Patrick Conway

officials in Harrisburg. The event is free for members and PRLA handles coordinating your appointments with your representative and senator. For more information or to register, visit Mark your calendars for the POWER PAC Golf Classic East on Tuesday, June 25 at RiverCrest Golf Club & Preserve in Phoenixville. This popular event traditionally reaches its golfer cap, so register early at We are pleased to announce the addition of two new association staff members. Brenda Mendte and Joyce Kraemer joined the PRLA staff team as directors of member services—eastern region and western region, respectively. Their primary responsibilities include growing new member sales and improving member service and retention in their respective regions of Pennsylvania. Thank you for your continued membership and support. Best regards,

Matt English

Patrick Conway

Chairman of the Board

President & CEO

Prepare for the healthcare law:



Most operators understand the law requires In 2014, the tax penalty for an employers with 50 or more full-timeindividual who fails to obtain equivalent (FTE) employees to offer “minimum coverage will start at $95, or 1 essential coverage” to their fullpercent of a person’s taxable income, time employees (and their whichever is greater. That amount dependents) or face potential penalties. However, many increases to $695 or 2.5 percent employers with more CONSULT YOUR of income in later years. INSURANCE BROKER than one business entity Employees with incomes Consider whether you don’t realize that they between 100 percent and should make any changes might need to consider 400 percent of the federal to your current health their employees as plan(s) this year. Your poverty level (currently one group. That could broker will be able to push you over the $11,170 to $44,680 for a help you determine more 50-FTE threshold. single person, or $23,050 to options as regulatory $92,200 for a family of four) agencies release CONSULT YOUR may qualify for premium tax more rules. TAX ADVISOR

Make sure you contact your tax attorney or CPA about ownership considerations and how many employees each business entity has [guided by common control: IRC §414(b), (c), (m), (o)]. Also, some new taxes associated with the healthcare law take effect this year. STUDY YOUR WORKFORCE NUMBERS

For the purposes of this law, an FTE is defined as working an average of at least 30 hours a week in any given month, or the equivalent of 130 hours per calendar month. Look carefully: Under the new definition, how many FTEs do you have? What are the hours worked by part-time and seasonal employees? Although you are not required to offer benefits to part-time employees, their hours (and those of seasonal employees) are included in the calculation to determine whether you meet the 50-FTE threshold for the employer mandate. The answers to these questions will help you better understand the potential impact of the law on your business. 6 •



credits or cost-sharing reductions to purchase coverage on the exchange in your state. Be aware of the cost of that coverage on your state’s exchange: Employees will be comparing your plan’s monthly premium contribution rate to those on the exchange.


Under the new law, most employers must act as sources of information for employees. Employers subject to the Fair Labor Standards Act must issue written notices to employees that tell them about the exchange, how to access it and more. Employers must provide written notification beginning in late summer or early fall. Your employees might look to you for answers to their questions about the healthcare law. It is wise to think about how you will explain the impact of the law on your business.


Some states are setting up their own exchanges or insurance coverage marketplaces. Others have said they won’t set up state exchanges, which means the federal government will operate a “federally facilitated exchange” in place of a state exchange. Several states may operate an exchange jointly with the federal government. Look for opportunities to engage with state officials charged with establishing and operating the exchange. Ensure they hear from small business owners who could purchase coverage for their employees on the exchanges. If employers could use the exchanges to buy coverage in the future, the business community needs to ensure the exchanges work for employers.


Employers with 50 or more FTEs will be required to comply with complex new reporting rules. Every Jan. 31, beginning in 2015, those employers must report information to the IRS about individual FTEs and their dependents. That could

include information from your payroll system, health benefit plans and other sources. Consider what information will need to come from which system or third-party vendor. How will you set up a process to aggregate this information to then report it to the IRS? Consider how much lead time you might need before reporting begins. TELL YOUR STORY: LET YOUR ELECTED OFFICIALS KNOW HOW THE LAW IS AFFECTING YOU

The restaurant industry is impacted by this law like almost no other industry because of the unique characteristics of our workforce. Explaining the business decisions that you are faced with now will help lawmakers understand how to mitigate the law’s impact on employers’ ability to create jobs. STAY ABREAST OF NEW DEVELOPMENTS

The National Restaurant Association created the Health Care Knowledge Center ( as a one-stop shop for information about the law and related regulations. Source: National Restaurant Association

IT PAYS TO BELONG Pennsylvania Restaurant & Lodging Association members have exclusive access to special discount programs. If you aren’t already a member, join Pennsylvania Restaurant & Lodging Association today by calling 800-345-5353 to take advantage of these great offers: Heartland Payment Systems Credit Card and Payroll Processing UnitedHealthcare Health Insurance Programs Prime Source Purchasing Manufacturer Rebate Program Fishbowl Email Marketing Solutions BMI Music Licensing National Restaurant Association Operator Resources American Hotel & Lodging Association Operator Resources Operator Resources Pennsylvania Restaurant & Lodging Association 100 State Street, Harrisburg, PA 17101 800-345-5353 •



• 7

LEGISLATIVE CORNER Privatization of Wine and Spirit Sales

Budget Update Gov. Corbett has set a very high bar this year relating to his budget goals. He hopes to achieve pension reform, transportation funding, business tax reform and privatization of wine and spirit sales. All of the items are heavy lifts, and to achieve any of them will require a lot of negotiation and be part of a larger budget package — which will need to be passed by June 30.

At the end of March, in a historic vote, the House of Representatives passed House Bill (HB) 790 (Turzai—R, Allegheny), which would privatize the retail and wholesale portion of the Pennsylvania Liquor Control Board. The bill is currently in the Senate where hearings are scheduled to be held and changes are expected to be made. The association supported passage of the bill in the House and will continue to advocate for licensees in the Senate. PRLA’s primary concerns are to ensure the cost of product goes down, product availability is increased, and the value of licenses is preserved.

Leave pre-emption PRLA is currently pursuing legislation that would allow the state to pre-empt any local ordinances relating to paid leave. The association believes that pre-emption creates a level playing field for all businesses, as opposed to one county or city business being at a disadvantage to other counties or cities. The legislation would say that only the state can mandate a paid leave. Hotel taxes PRLA and the Pennsylvania Association for Travel & Tourism (PATT) have created a joint hotel task force to develop a comprehensive plan to address issues relating to hotel taxes in the Commonwealth. The task force has developed a list of priorities that PRLA will pursue and include in its annual legislative day on May 7. Paid sick leave in Philadelphia Councilman Greenlee once again sponsored legislation mandating paid leave in the City of Philadelphia. The bill would have required businesses to offer up to 56 hours of leave that could be used in hourly increments and would not require employees to call out ahead of time. The bill was passed in Council with a vote of 11-6, but once again, Mayor Nutter recognized the impact it would have on businesses and vetoed the legislation. Restaurant grading in Allegheny County Members of the PRLA’s Western Chapter continue to participate in meetings relating to a proposed restaurant grading system. While the chapter remains opposed to the system, they are ensuring that, if the plan moves forward, the grading system is fair and re-inspection before posting a grade is available. The Pennsylvania Restaurant & Lodging Association is committed to representing the hospitality industry at all levels of government on legislative and regulatory issues that have a direct impact on our industry and our members’ bottom lines. The above issues are just a few of the priorities in which your association is currently engaged.

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legislator spotlight


is currently serving his fourth term in the Pennsylvania Senate. As President Pro Tempore of the Senate, Joe holds the thirdhighest constitutional office in the State. He was born and raised in Brockway, Pennsylvania and represents the 25th Senatorial District, which includes: • Cameron • Elk • Jefferson • McKean • Potter • Tioga • Clearfield (portions) • Warren (portions) Joe grew up understanding that business and industry are vital to our state’s economy and its future. After graduating from Penn State University at DuBois, Joe became a third-generation business owner in the Brockway area. He has carried on the lifelong tradition of working to better his community through involvement and civic leadership, serving on both the Brockway Borough Council and the Jefferson County Development Council. He is also a member of the St. Tobias Roman Catholic Church in Brockway. Working in the private sector for 20 years prior to coming to Harrisburg and serving as a local official have given him a unique perspective on how government can work more effectively to help job-creators, working families and communities. Since being elected to office, Joe has been a leader in reforming the way business is conducted in Harrisburg, and he remains committed to making the institution more open and accessible to the citizens of the Commonwealth. As Senate President Pro Tempore, Joe serves as an ex-officio member of each of the 22 Senate Committees. He has been a committed leader in addressing numerous important fiscal and conservative issues within the state. In his 12 years as a State Senator, Joe has served as a rank and file member of the Senate, as a member of Senate Leadership and currently as Senate President Pro Tempore — a position that he was elected to by the full Senate. In November of 2008, with the passing of Catherine Baker Knoll, Joe became Pennsylvania’s 31st Lieutenant Governor. He served the remainder of Lieutenant Governor Knoll’s term, which ended January 18, 2011. Joe enjoys spending time in his hometown of Brockway and working outdoors. He is the father of three children, Lisa, Kelly and Michael. SPRING 2013


• 9

Round up. Donate change. Make a difference. WHAT IS ROUND IT UP AMERICA®?

PRLA seeking participants for Round It Up America® program

Founded by leaders in the restaurant industry, Round It Up America® (RIUA) is a non-profit organization that strives to make change across America through a simple, yet powerful charitable giving program. Mission Partners— participating restaurants —provide their patrons with the opportunity to “round up” their purchases upon the close of credit card sales. Credit card receipts presented to patrons include a line: Round Up For Charity. The patron simply fills in the donation on this line. The bill is then processed for (RI payment. UA) is a non-profit

America® try , Round It Up werful , yet pofor In addition a platform simple ough toa being across Americathethr American public to donate to

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1) RIUA serves as a platform to centralize, streamline and ants Making Change ultimately increase company Mission Partner (Restaurant) Involvement giving.

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ccordingly: as grant recipients. ns receive 2) You choose the charitiesn-p (up izatiowill Program Participation/Implementation anthat org roftoitthree) no ee thr • 2% National Restaurant Association Educational Foundation to up s ect sel Giving – Mission Partneryour donations—you can directly impact your community. Fund Distribution & Charity Involvement • 5% Administrative Fees lief an Red Cross Dis aster3) Re RIUA showcases Mission Partner restaurants as philanthropic leaders on its website and social

Program Administration t® Programs media sites.Educational Foundation ion iat soc As nt ura nnsylvania Resta dation unFinancials ucational FoDISTRIBUTED? HOW ARE DONATIONS ion Ed iatTHE ational Restaurant Assoc Each Mission Partner’s fund is distributed as follows:

strative Fees Region • 75% Flexible Partner chooses up to three gelesGiving—Mission merican Red Cross Los An charities as grant recipients Background ound It Up America® er) rtn • 10% American Red Cross Disaster Relief Pa on ssi Mi by covered Card Interchange Fees (re

o 4% American Red Cross Los Angeles Region o 1% RIUA

• 2% Credit card interchange fees (recovered by Mission Partner) HOW DO I SIGN UP IN THE PROGRAM? For more information or to sign up, simply contact Hope Sterner, PRLA education coordinator, at (800) 345-5353 or via email at

1. What is Round It Up America®?

ic LeadersRESTAURANT & LODGING Round It Up America® (RIUA) is a dnon-profit organization that strives to make change across Ame 10hr•op PENNSYLVANIA matters • SPRING 2013 rants as Philant centralize, streamline, an to powerful tformyet pla a as ve ser simple, charitable giving program. to d ne is uniquely desig

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A Lost & Found Solution by Deidre Wengen As seen in Lodging Magazine April 2013.

The lost and found departments at most hotels can easily be compared to a piled-up purgatory, where left-behind phone chargers, keys, and jewelry await a reunion with their owners. And since the lost and found process is often such a hassle, most of those items continue to take up space in the nooks and crannies of hotels until they are deposited into a landfill. But a new company is setting out to reinvent how hotels handle lost and found procedures and help guests reunite with their personal possessions in an efficient and timely manner.

Colodny bought a new phone charger and didn’t give it much thought, but after reading an article in the Wall Street Journal about the staggering number of items that go missing in hotels each year, Colodny decided to come up with a way to fix the age-old problem.

Chargerback, which takes its name from the number one item left behind in hotel rooms, is a software solution that is designed to streamline how hotels file, find, and return lost items to guests. Brian Colodny, president of the company, says the idea came to him after he left a phone charger in a hotel room and had a difficult time trying to locate it once he returned home. “I called up the hotel, and they kind of laughed at me,” Colodny says. “It was upsetting, because it was for a smartphone and retailed for around $60.”

“Our goals were twofold,” Colodny says. “One was to solve the frustration that guests have when they leave something behind. But we also wanted to make it easier for the hotel to keep track of their lost items and to move them off of the archaic system that many use.”

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A February 2013 survey conducted by Wakefield Research shows that almost half (43 percent) of respondents who have lost an item in a hotel didn’t take steps to retrieve it because it was too much hassle, required too much time, or the process wasn’t readily apparent.

Chargerback is a free service for hotels. The system allows hotel staff members to input item information—where it was found,

“Our goals were twofold. One was to solve the frustration that guests have when they leave something behind. But we also wanted to make it easier for the hotel to keep track of their lost items and to move them off of the archaic system that many use.” when it was found, a detailed description, etc.—into an easyto-use online system. The company then builds out an iframe for properties to use on their branded websites where guests can report a lost item directly to the hotel using a form. Once the report is filed, the lost and found manager at a hotel can open the report and track the lost item by keywords, location, and description. Once the item is matched, the software will automatically send the guest an email explaining that the item was found and detailing the shipping cost for the item’s return. The guest then has the option to securely enter his or her credit card information for the shipping, and the lost item will be on its way back to its owner. For Jean-Pierre Patay, hotel director at the 1,710-room Silver Legacy Resort and Casino in Reno, Nevada, implementing Chargerback was a no-brainer. “Like most properties, we did the best that we could with what we had,” he says. “We stored the lost and found items in all of the unused nooks and closets, and there was a tired and overworked individual that was tasked with

managing those items. Chargerback has created a solution for effectively managing lost and found.” Patay says that the system has helped the resort dramatically reduce the number of items stocked in its lost and found department. He explains that it has also helped with satisfaction scores, since guests are no longer bounced from department to department, or left leaving voice messages on an answering machine and hoping for a call back. Colodny hopes hotels will begin to implement the system as a way to better manage their lost and found inventory. He also says that Chargerback will shortly expand and offer its service to other sectors of the hospitality industry including airlines, rental cars, entertainment venues, and restaurants. “We think this represents a paradigm shift in how people get their items back,” Colodny says. “We want to brand Chargerback as the system for lost and found.” SPRING 2013


• 13

Train Your Staff

Educational Institute (EI) Certification Programs Create Efficient and Cost Effective Options by Elizabeth Johnson Any hotel, hospitality business or lodging facility should use certification programs to constantly train and retrain their employees. As older employees transition out of their “usual” roles, and as newer employees come onboard, there is not always a direct connection or a protocol in place that helps these transitioning employees get the proper training they need to be safe and effective hotel staff. For the new staff, it’s learning a new skill the right way the first time. In assisting the older employees with their new roles, many times the “proper way” was never shown to these seasoned veterans in the first place. So, at every juncture, the opportunity to properly train employees using certification programs exists within any lodging or hospitality facility. At worst, many hotels and restaurants simply shuffle employees around and “hope for the best” or put the more experienced employees on training to show the newer staff the ropes. At best, by employing EI training programs, certification, and distance learning, you can get your employees the most up-to-date training information that’s both accurate and efficient. This is exactly what they need to be both exemplary employees and to increase your guest’s satisfaction levels dramatically. By using the Educational Institute’s certification programs, not only can you rely on consistent information to train your staff, but you can also tap into 60 years of experience that has made the Educational Institute the ‘go-to’ resource for training programs and certifications for the world’s top hotel chains and other successful hospitality establishments. Some of Educational Institute’s popular certification programs include the following:



Certified Food and Beverage Executive certification programs create a consistent format through the EI by providing world class educational materials, dedicated food and beverage training and other resources to make this aspect of your business super-efficient and highly profitable. The CFBE holds a place of honor in the industry and demonstrates the executive’s knowledge and experience in this important component to your businesses success and profitability.

Security at your hotel or resort is paramount to your guest’s safety. By enrolling your security personal in CLSD certification programs you can mitigate many risks that surround your security protocols at your business. Safety is everyone’s concern, however the director of security at your hotel or hospitality business assumes a crucial role. The security executive can gain the honor of being Certified Lodging Security Director (CLSD), which is the most prestigious certification available in this class of certifications. Globally recognized, the CLSD is a highly respected professional credential that validates your advanced knowledge in the hospitality industry and puts the emphasis on safety awareness and safety procedures that dramatically minimize potential holes in your security systems.

CERTIFIED HOTEL ADMINISTRATOR – CHA By achieving the honor of being a “CHA Certified Hotel Administrator” you can add this to your list of accomplishments as a hotel general manager or hospitality executive. A CHA is part of an elite group of hospitality professionals with the education, experience, drive and determination to be recognized as a leader in the hospitality industry. This high level of expertise is globally recognized internationally as a highly respected level of professionalism, which adds to your credentials and validates your advanced knowledge in hotel and hospitality industry. Lodging professionals are recognized with a CHA as leaders whose knowledge and managerial abilities are exemplary. Achieving the CHA certification announces that you have a place among the best in your profession, are abreast of current trends and latest hospitality protocols. This certification can advance your current and future career opportunities inside the hotel and lodging industry.

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CERTIFIED ROOMS DIVISION EXECUTIVE – CRDE Rooms are the focal point of any hospitality business. If the rooms are immaculate and neat, the guests respond with higher customer satisfaction and return rates. By certifying your rooms division executive as a CRDE, your director of rooms will achieve the most prestigious certification available to management rooms’ division executive. Hospitality professionals in this elite group have combined education, experience and dedication to the industry and have achieved a high level of expertise that focuses attention on every detail and aspect of a great customer experience. Achieving the CRDE certification announces that you have a place among


the best in your profession, and that you are paying close attention to the latest industry trends and the latest hospitality protocols. A CRDE designation can also further your career goals and advance your career in any hotel or hospitality business. Certification programs offered by the Educational Institute are well known throughout the industry as the standard of excellence and can make your career in the hospitality industry soar to new heights! Visit and select certification programs to browse the full list of certifications available.

About the American Hotel & Lodging Educational Institute

Established in 1953 as a nonprofit educational foundation of the American Hotel & Lodging Association, the Educational Institute’s mission is to continue being the preferred provider to the lodging industry, hospitality schools, and related hospitality industries by developing and providing quality resources to train, educate, and certify hospitality professionals worldwide.

Source: American Hotel & Lodging Educational Institute


ServSafe® Certification Class Schedule presented by UnitedHealthcare

May – September 2013

The Pennsylvania Restaurant & Lodging Association’s one-day and online courses are approved for Pennsylvania Department of Agriculture certification. All course materials will be shipped via UPS two weeks prior to the course date, unless otherwise specified. A $60 transfer fee will be assessed if you cancel less than 2 weeks prior to the course date. ONE DAY COURSE WITH CLASSROOM INSTRUCTION AND PROCTORED EXAM $140 M / $180 NM Recommended for most registrants and includes textbook and answer sheet. Participants study at home and in the classroom. HOME STUDY WITH A PROCTORED EXAM IN THE CLASSROOM $115 M / $140 NM Recommended for the experienced foodservice professional since no classroom instruction is provided. Participants study at home and then attend a proctored exam. ONLINE COURSE WITH PROCTORED EXAM IN THE CLASSROOM $150 M / $190 NM Recommended for the experienced foodservice professional since no textbook or classroom instruction is provided. Online course takes about 8-10 hours to complete and requires a high-speed internet connection. RETESTING This option is provided for those who must simply re-take the ServSafe exam.


2013 ServSafe® Schedule with Locations MAY 5/6 Greensburg, Courtyard Marriott 5/6 State College, Hotel State College 5/13 Carlisle, Carlisle Area High School 5/13 Philadelphia, Hampton Inn 5/13 Uniontown, TBD 5/20 Lancaster, Bird-in-Hand Family Restaurant JUNE 6/3 Wilkes-Barre, Ramada Inn 6/10 Bethlehem, Northampton Community College

REGISTER ONLINE OR CALL • (800) 345-5353

6/10 6/17 6/24 6/24

Monroeville, Courtyard Marriott Harrisburg, Central Penn College Altoona, TBD Philadelphia, Hampton Inn Center City Philadelphia

JULY 7/8 Lancaster, Bird-in-Hand Restaurant 7/8 Exton, TBD 7/15 Belle Vernon, TBD 7/22 Wilkes-Barre, Ramada Inn 7/29 Harrisburg, Central Penn College 7/29 Monroeville, Courtyard by Marriott

AUGUST 8/5 Butler, Fairfield Inn 8/5 Philadelphia, Hampton Inn Center City Philadelphia 8/5 State College, Hotel State College 8/12 Reading, The Peanut Bar 8/19 Gettysburg, TBD 8/19 Greensburg, Courtyard by Marriott 8/19 Tannersville, TBD SEPTEMBER 9/9 Philadelphia, Hampton Inn Center City Philadelphia 9/16 New Castle, TBD 9/16 Washington, Angelo’s Restaurant 9/23 Wilkes-Bare, Ramada Inn 9/23 York, York Co. School of Tech.

100 State Street I Harrisburg, PA 17101 I 800.345.5353 I 717.236.1202 FAX I

SAVE THE DATE 15th Annual


Serving the Needs of the Restaurant Industry f o r

m o r e

t h a n

4 5

Golf Classic

Y e a r s

Shumaker WilliamS




• Acquisition, sale and financing of restaurants • Liquor license acquisition and sale • Defense of liquor license citations and enforcement actions • Dram shop liability • Structuring to limit liability • Employment law and wage & hour issues • Litigation, mediation and dispute resolution • Intellectual property protection including trademarks, copyrights and trade secrets • Tax, business and estate planning

REGISTER (800) 345-5353 Sponsorship opportunities are available. Contact PRLA for details.

Harrisburg, PA (717) 763-1121 • York, PA (717) 848-5134 • Towson, MD (410) 825-5223


POWER PEC Golf Classic West August 27, 2013 Omni Bedford Springs Celebrating 16 years of golfing & giving back. Register today at or call (800) 345-5353. Sponsorship opportunities are available. Call PRLA for information.

25th Annual

LEGISLATIVE DAY Protect your business. Tell your story. May 7. REGISTER TODAY


what’s happening around the state? BERKS-SCHUYLKILL CHAPTER • Courtyard by Marriott Reading/ Wyomissing will host the Berks-Schuylkill Chapter meeting on Tuesday, May 28. The event will feature an educational session on waste management and composting sponsored by Cougle’s Recycling Inc. BRANDYWINE CHAPTER • Join Iron Hill Brewery & Restaurant at the Brandywine Valley Craft Brewers’ Festival on May 18 in Media, Pennsylvania. Twenty-five local breweries will be showcasing the best craft beer in the region with food and live music all day. Proceeds of the yearly festival benefit the Media Youth Center. • RiverCrest Golf Club & Preserve, Phoenixville, will host the PRLA Power PAC Golf Classic East on Tuesday, June 25. This is the fifth year that the tournament will be held at this beautiful venue. For more information or to register for the tournament visit www. • Sarah Ivy of SorinRand, Rick Sell from Darden-Bahama Breeze and Scott DeFife, National Restaurant Association, served as the panelists for the Affordable Care Act discussion held on March 10 at the PRLA Spring Meeting in Pittsburgh. CENTRAL CHAPTER • At its yearly conference, the Professional Association of Innkeepers International (PAII) honors B&B owners, innkeepers and industry leaders who make notable contributions to the bed & breakfast industry for the previous year. At the annual event, Dee Fegan, owner/innkeeper of Pheasant Field Bed & Breakfast, Carlisle, was presented with PAII’s “Champion Award” which is given to the person or group who have championed the B&B industry at the local or state level. • The Pennsylvania Farm Show Complex hosts the annual PA Flavor event on Saturday, May 4. Stop by for the ultimate in food and beer pairings. Tickets can be purchased from LANCASTER CHAPTER • On April 8, PRLA allied member Murray Securus will host a complimentary seminar on the Affordable Care Act at its Lancaster facility. • Lancaster-based Restaurant Rescue Consulting has acquired Local-Mobile-Apps, a company that builds affordable mobile apps and websites and specializes in the hospitality industry.

• Prudhomme’s Lost Cajun Kitchen has gone wild! Joining the gator, bison, frog legs and crawfish on the menu are new kids on the block: elk, wild boar, venison and kangaroo. Catch Chef Sharon Prudhomme as she celebrates 14 years as one of ABCTV27’s Mid-Day Gourmet Chef, cooking live once a month on the noon show. • Foodservice Equipment & Supplies magazine named Singer Equipment Company its 2013 Dealer of the Year and will be presenting Singer with an award during its annual Industry Awards Gala on May 18 in Chicago. MIDWESTERN CHAPTER • The Omni Bedford Springs Resort received a Platinum Adrian award at the Hospitality Sales & Marketing Association International (HSMAI) annual awards dinner held at the New York Marriot Marquis last January. The resort will host PRLA’s Power PEC Golf Classic on Tuesday, August 27. PHILADELPHIA CHAPTER • Chickie’s & Pete’s Crab House and Sports Bar will open a location at the Tropicana in Atlantic City just off the casino floor and the Boardwalk. This two-story, 16,000-square-foot full service restaurant and sports bar will offer an extensive menu, including Chickie’s & Pete’s world famous crab fries, more than 50 televisions, and the PLAY2 interactive sports bar concept. Chickie’s & Pete’s was voted the #1 Sports Bar in North America by ESPN

• The Dave Magrogan Group continues to expand in 2013 by recently announcing the Harvest Seasonal Grill and Wine Bar, opening in July at the Shoppes at English Village in North Wales. DMG’s original brand, Kildare’s Authentic Irish Pub, is now franchising across the country, with the latest unit opening in Columbus, Ohio. DMG continues its “Give Love Serve” charity program in community, which has donated more than $100,000 a year to local charities, community organizations, schools and sports clubs.

WESTERN CHAPTER • Emiliano’s Mexican Restaurant, Gibsonia, hosted the Western Chapter Spring Mixer on Monday, April 8. This event featured spirits tastings sponsored by Capital Wine & Spirits, Southern Wine & Spirits and Pittsburgh Brewing Company and hors d’oeuvres provided by US Foods and Emiliano’s. • Jason Capps, Chef and owner of Bella Sera, will be “Dancing with the Celebrities” of Pittsburgh at a charity event on May 4 at the Westin Convention Center. www. dancingwith thecelebritiesof • Renaissance Pittsburgh Hotel hosted the PRLA Spring Membership Meeting in March. The event featured a dinner with guest speaker Roz Mallet, former NRA Chair, and NRA Restaurant Neighbor Awards presentation. • Franco’s Trattoria has hired Larry Stakes, long time general manager of Pittsburgh’s acclaimed Ruth’s Chris Steakhouse, as director of operations who will be responsible for day to day operations of the two current locations and expanding the concept into more restaurants. • Taste of the NFL is an annual charity event held before the Super Bowl that features some of the country’s most critically acclaimed chefs and some of the most famous former and current NFL football players. For the past six years, former Steeler Andy Russell and Biglow Grille’s Chef Anthony Zallo have represented Pittsburgh, raising more than $70,000 for the Greater Pittsburgh Community Food Bank. Those funds translate to a donation of more than 600,000 meals to the Greater Pittsburgh Community Food Bank. • The Carlton has a new chef! Executive Chef Simon DeJohn joined the staff seven years ago while studying at Le Cordon Bleu. He progressed from station to station, eventually becoming an extremely valuable sous chef responsible for some of the Carlton’s most popular dishes. There are many new additions to the menu and an overall excitement in restaurant. Simon is only the fourth Executive Chef in the Carlton’s 29-year history!

For more information on any of the above events or to include your event or news in the next issue of Pennsylvania Restaurant & Lodging Matters, contact Heidi Howard, PRLA meeting and event planner, at (800) 345-5353 or email to SPRING 2013


• 17



Knowledge is power in your operation. As a member of the Pennsylvania Restaurant & Lodging Association (PRLA), you have many informational resources available at your fingertips to help you with your day-to-day legal, regulatory and operational questions.

Youth Employment Dos and Don’ts in Pennsylvania Summer break is just around the corner. With nearly one-in-four teenagers employed by the hospitality industry, PRLA has compiled some of the most frequently asked questions about hiring minors. Penalties can be steep for failing to abide by these regulations. Visit the Pennsylvania Department of Labor’s website,, or call the Bureau of Labor Law Compliance at (800) 932-0665 if you have questions. What is the minimum age for employment and restrictions for employing minors?

16- and 17-year olds may not work:

16- to 17-year olds may not:

• more than 28 hours in a work week when school is in session

• operate, assist in operating, or set up, adjust, repair, oil, or clean any horizontal or vertical dough mixer (except they may operate powerdriven pizza dough rollers and portable countertop food mixers), batter mixer, bred divider, rounding or molding machine, dough bake, dough shooter, combination bread slicer and wrapping machine, or band saw.

• more than 44 hours per work week What are some job duties minors cannot perform in the hospitality industry? Restrictions depend on the age of the minor, and some examples are listed below. The National Restaurant Association Legal Problem Solver provides a comprehensive list. This resource is free for PRLA members.

A workers’ permit is required before minors younger than 18 can start work. Applicable forms may be found on the Pennsylvania Department of Labor Website —

14- to 15-year olds may not:

Youth under the age of 14 are only permitted to work on farms in Pennsylvania.

• use a deep-fryer basket that must manually be raised or lowered

14- and 15-year olds may not be employed:

• use a rotisserie or other cooking devices that operate at extremely hot temperatures.

• before 7 a.m. or after 7 p.m., except during the summer when they can work until 9 p.m. • more than 3 hours a day on school days; or more than 18 hours a week during school weeks • more than 8 hours a day on non-school days; or more than 40 hours a week during non-school weeks

18 •

• cook on a grill that has an open flame • perform any baking, including any part of the baking process

• clean grills, fryers or steam tables when the temperature is 100 degrees Fahrenheit or higher • operate, set up, adjust, clean, oil or repair power-driven food slicers and grinders, food choppers and cutters, and bakery-type mixers



• work as an operator of, or helper on, the following power-driven fixed or portable machines (automatic feed machines are not restricted): o circulator saws o band saws o guillotine shears

This information has been summarized from the National Restaurant Association Legal Problem Solver. The Legal Problem Solver is a free, online member resource that summarizes various legal topics, including tip reporting, employee meals, uniforms, etc. Visit profitability/support/legal to access all available topics.

WELCOME NEW MEMBERS Restaurant Members 1741 on the Terrace Bethlehem, PA Aussie & The Fox Lancaster, PA

Landmark Americana West Chester, PA

Vintage Wine Bar Philadelphia, PA

Legends Sports Bar & Grille Mechanicsburg, PA

Whiskers State College, PA

Liberté Urban Lounge Philadelphia, PA

White Castle Systems Inc Columbus, OH

Azalea Restaurant Philadelphia, PA

Marzoni’s Brickoven & Brewing Co. Altoona, PA

Bavarian Lounge Seven Springs, PA

Maxwells Restaurant & Lounge Washington, PA

Beacon Hotel Renfrew, PA

Merlin’s Bar & Grill Saint Marys, PA

Braddock’s American Brasserie Pittsburgh, PA

Oasis Pub Erie, PA

Bridges Cafe Camp Hill, PA

O-Toro Wayne, PA

Casey’s Corner Scranton, PA

P.J.’s 1910 Pub Scranton, PA

The Dining Room State College, PA

Raven’s Ledge Erie, PA

Doc Magrogan’s Fish Market Scranton, PA

Red Owl Tavern Philadelphia, PA

Doc Magrogan’s University City Philadelphia, PA

The Remedy Houtzdale, PA

Epiphany Lancaster, PA Firehouse Subs Malvern, PA Foggy Goggle Seven Springs, PA The Gardens State College, PA Great American Grill Ft. Washington, PA The Great American Grill Harrisburg, PA

Ristorante Panorama Philadelphia, PA Rivers Club Pittsburgh, PA Seafood Shanty Reading, PA Season’s Restaurant Harrisburg, PA Slopeside Seven Springs, PA Square 1682 Philadelphia, PA

The Grille At Chesterbrook Wayne, PA

Steelhead Brasserie and Wine Bar Pittsburgh, PA

Harvest University City Philadelphia, PA

The Summit Restaurant Lackawaxen, PA

Helens Seven Springs, PA

Taj Palace Restaurant Harrisburg, PA

Hello Bistro Pittsburgh, PA

Timbers Seven Springs, PA

Huckleberry’s Restaurant Lancaster, PA

Top of the 80’s Road Hazleton, PA

The Kling House Intercourse, PA

Trindle Bowl Mechanicsburg, PA

Lacroix Philadelphia, PA

Trolley’s Bistro Scranton, PA

Landmark Americana Philadelphia, PA

Union Gourmet Catering/ Restaurant Philadelphia, PA

Landmark Americana Wayne, PA

Allied Members BPS Worldwide 1860 Greentree Road Cherry Hill , NJ 08003 Gary Shull Contract Lighting Sales 22 Makefield Turn Morrisville, PA 19067 Sy Henenberg Draft Solutions PO Box 2514 Warminster, PA 18974 Michael Lohin Food Safety Training Solutions LLC 109 West Patterson Street McConnellsburg, PA 17233 Francine Shaw

TableComm 170 White Pine Way Harleysville, PA 19438 Vince Yost UGI Performance Solutions 2975 Advance Lane Colmar, PA 18915 Hannah Mein Uni-Kem Chemical 802 William Leigh Drive Tullytown, PA 19007 Ralph Patrone, Sr. Wright Food Service PO Box 51235 Philadelphia, PA 19115 Jill Dresnin Joshua Systems Inc. PO Box 1264 Waldorf, MD 20604 Mark Fine Micros Systems Inc. 2577 Interplex Drive Feasterville-Trevose, PA 19053 Blake Webb Murray Securus 454 New Holland Avenue, Ste 300 Lancaster, PA 17602 Suzanne Tercha

Foods Galore 9246 Commerce Highway Pennsauken, NJ 08110 Rick Braun

Rewards Network 2 N. Riverside Plaza, Suite 200 Chicago, IL 60606 Allie Ramsey

InterContinental Hotel Groups 2607 Whittier Place Wilmington, DE 19808 Tim Schipper

Lodging Members

ITG Networks 11676 Perry Highway, Suite 3105 Wexford, PA 15090 John Spirnak, Jr. Joshua Systems Inc. Po Box 1264 Waldorf, MD 20604 Mark Fine PayrollSmarts LLC 117 VIP Drive, Suite 220 Wexford, PA 15090 Cami DelPrince Performance Food Group 1333 Avondale Road New Windsor, MD 21776 Steve Ferentinos Restaurant Technologies Inc. 230 Turner Industrial Way Aston, PA 19014 Daniel Kateusz Rewards Network 2 N. Riverside Plaza, Suite 200 Chicago, IL 60606 Jim Dougherty

Courtyard by Marriott State College State College, PA Crawford County Convention & Visitors Bureau Meadville, PA Hampton Inn Philadelphia Center City-Convention Center Philadelphia, PA Hotel Monaco Philadelphia Philadelphia, PA Hotel Wayne Honesdale, PA Neshaminy Inn Trevose, PA Park Inn by Radisson, Sharon West Middlesex, PA Penn’s View Hotel Philadelphia, PA The Rittenhouse Hotel Philadelphia, PA

Stouffer’s 30000 Bainbridge Road Solon, OH 44139 Mr. Todd Montazzoli



• 19


Inking the Inc. When is the Right Time to Incorporate and What Type of Business Entity is Best for You? by Kenneth J. McDermott, Esquire Shumaker Williams, P.C. General Counsel, Pennsylvania Restaurant & Lodging Association

WHEN SHOULD I INCORPORATE? If you have already started your business, the most common answer you will receive is probably “yesterday.” The benefits of incorporating frequently outweigh the negatives. One of the major benefits is the limitation of the personal liability of the owners/ shareholders of the corporation. No one is immune from being sued; but generally the more you interact with the public, as do hospitality businesses, the more probable it is that you could be sued. When you incorporate, you create a business entity with a separate legal identity. For example, if Jim owns “Jim’s Steak and Cake,” a cheese steak and cupcake food truck, as a “sole proprietor,” he could be held personally liable if someone is injured as a result of his business operations or if the business cannot pay its bills. For example, if salmonella from eggs used in Jim’s cupcake

batter somehow contaminates the cheese steaks and causes his customers to fall ill, Jim could be held personally responsible for any damages that result, whether or not Jim is the individual who actually caused the harm. His personal assets would be at risk. On the other hand, Jim could create “Steak and Cake Inc.,” which now operates the business. As a general rule, high potential liability businesses such as construction contractors, or hospitality businesses that serve alcohol, are structured as corporate entities to protect the owners from personal liability in the event of a substantial legal claim. By doing such, he minimizes the risk of having his personal assets at risk in the event of an adverse judgment against the business. An exception to such protection could occur if Jim was the individual that personally “acted” (i.e., mixed the batter) causing the harm, in which case he, as well as the corporation, could be sued. With respect to financial obligations of the corporation, Jim still may be held liable if he personally guaranteed the obligations of the business (as is frequently required by bank loans). In addition to focusing liability on the business entity itself, rather than the individual owner(s), other advantages to incorporation include the ability to raise funds by selling portions of the business to passive investors, potential tax advantages, durability (the entity can continue without you), and, especially for the well-organized, there are certain benefits to the corporate structure itself, including defined roles for certain employees and requirements for meetings and recordkeeping. However, incorporation is not for everyone. There are costs associated with incorporating, additional tax returns to be filed, and the need to maintain the business as compliant with corporate laws and regulations. Ultimately, there is no exact formula to calculate when to incorporate, but if your business is more than a hobby, and especially if it is in a high liability area, you should have concerns about personal liability. If you are considering attracting outside investors for additional capital, they may insist upon the protection of a corporate-like structure so they do not have personal liability. WHAT TYPE OF ENTITY IS RIGHT FOR YOU? While people naturally think of corporations when they hear the term “incorporate,” there are several entity forms providing personal liability protection from which to choose.

20 •





The Pennsylvania Restaurant & Lodging Association (PRLA) Political Action Committee (PAC) and Political Education Committee (PEC) 2013 fundraising efforts are officially underway. PRLA is a large association, and has many legislative goals to achieve this year, which means that a healthy PAC and PEC are extremely important. The PRLA PAC uses personal donations from our members that go directly to campaign committees of members of the legislature and political candidates that support the ideals and goals of the PRLA. The PRLA PEC uses corporate donations to pay for the tools we use to educate legislators. PRLA’s lobby

contracts, educational pieces, lobby day and media tools are all paid for from this fund. Privatization of wine and spirit sales will have a huge impact on businesses that serve alcohol, hotel tax reform needs to be achieved to ensure that the proceeds from these taxes are going primarily towards tourism and local fights continue relating to mandated paid leave and restaurant grading. Our voice needs to be heard as loudly as possible, and that cannot be achieved without full participation from our members.

Your donation is what ensures we achieve the legislative goals we advocate for every day. Please take this opportunity to contribute to the PAC or PEC today. Simply complete and submit the donation form on the next page to help your local chapter win the race.

With that being said, we are proud to announce a fundraising competition that will take place between the chapters of the association. The race

GENERAL PARTNERSHIP/LIMITED PARTNERSHIP A partnership is an entity separate from its partners and capable of entering into contracts and sue or be sued in its own name; therefore it satisfies our basic definition of to incorporate. However, because partners (with the exception of limited partners) are liable for the financial obligations of the partnership, personal liability is still an issue, and these entities are not in the same class of corporate entities discussed below. LIMITED LIABILITY COMPANY A Limited Liability Company (LLC) combines some of the best aspects of a partnership with the best aspects of a corporation. The personal liability of an LLC’s members is generally limited much like a corporation’s shareholders, but it can elect to receive partnership tax treatment. An LLC is governed by a customized operating agreement, leaving the manner of operation more flexible to meet the needs of its members than the statutory requirements of a corporation. CORPORATIONS A corporation is separate legal entity owned by its shareholders who generally are not liable for the debts and obligations of the corporation. For tax purposes, the corporation is taxed as a separate entity, which opens the possibility for double-taxation of profits (the corporation is taxed on its profits, and shareholders

to fundraise began on April 1 and will run until September 30. The chapter that raises that most total money and the chapter that raises money from the largest percentage of chapter members will be recognized at the PRLA Annual Meeting in November. Fundraising begins locally, and the boards of our local chapters are anxious to prove they can raise the most money for these two important funds.

are taxed on any dividends received from the corporation). It is possible to avoid double-taxation if the corporation elects to be classified as a Subchapter S corporation under the Internal Revenue Code. In that situation, the corporation is not taxed, but instead the taxes on corporate profits are paid by the individual shareholders based on their percentage of ownership, similar to a partnership. Subchapter S corporations are generally smaller, family-owned businesses due to the restrictions on the number of members and the type of businesses that can qualify for Subchapter S status. OTHER ENTITIES Although there are several other varieties of entities, the newest to enter the picture is a Benefit Corporation, or B-Corp. Statutorily authorized in Pennsylvania last year, a B-Corp is organized for the purpose of creating a public benefit. Such public benefits include preserving the environment, improving human health, and promoting the arts, sciences, or advancement of knowledge. While a B-Corp has a noble purpose, there are additional reporting requirements and standards that have to be met. Determining when to incorporate and what entity to choose is a critical decision. You should always consult a knowledgeable business attorney to assist you in selecting the correct entity for your business.



• 21

Contribution Form YES! I want to protect my industry and support the PAC and PEC. I/my company will contribute the following amount:

o $50

o $500

o $2,500

o $100

o $750

o $5,000

o $250

o $1,000

o Other $

Contribution Type

o Personal Check (payable to PRA-PAC)

o PAC-to-PAC Check (payable to PRA-PAC)

o Corporate Check (payable to PRA-PEC)

Contributor Information Company Name Address City / State / Zip Phone____________________________________Website Contact Name_____________________________Contact Email Good legislation begins with good lawmakers. The PAC financially supports lawmakers whose policies align with the hospitality industry’s priorities. The PEC educates lawmakers on the issues and challenge facing the hospitality industry. Thank you for supporting our legislative and advocacy efforts. Please return this form and your contribution to: Pennsylavnia Restaurant & Lodging Association Attn: PAC-PEC 100 State Street Harrisburg, PA 17101

Political Action Committee & Political Education Committee

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Pennsylvania Restaurant & Lodging Matters  

The official publication of the Pennsylvania Restaurant & Lodging Association

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